HashKey Listing: Another Milestone Event for the Blockchain Industry in China

Author: Yue Xiaoyu; Source: X, @yuexiaoyu111

HashKey is about to go public, another milestone event for the Chinese blockchain industry!

Many people actually overlook the importance of this matter; HashKey is a microcosm of the blockchain industry in Hong Kong, and there are many signals behind this issue.

It can be said that only by understanding HashKey can one understand the direction of the blockchain industry in Hong Kong and even in China.

Here, I combine the HashKey prospectus to share some of my own interpretations:

1️⃣ Hong Kong remains China's only open window!

Combining the recent policy trends, it can be observed that on one hand, there is continuous high-pressure regulation on the blockchain industry in the mainland, while on the other hand, the blockchain industry in Hong Kong is making significant progress.

The listing of HashKey once again validates the uniqueness of the Hong Kong region.

The more the mainland suppresses, the better it is for Hong Kong.

If China is a fortress with walls all around, then Hong Kong is a door left open.

What cannot be done in the mainland can be done in Hong Kong.

There have always been discussions that Hong Kong will continue to be China's financial backdoor, educational backdoor, and identity backdoor, both now and in the future.

Finance flows freely here, educational resources are abundant, and identity is independent from the mainland.

Hong Kong is definitely a place full of opportunities for Chinese practitioners in the crypto industry.

2️⃣ HashKey is the leader of the blockchain industry in Hong Kong, leading the industry forward!

HashKey listing = Hong Kong's determination to integrate Web3 into financial infrastructure has been officially priced.

HashKey is the Asian version of Coinbase.

Coinbase is the only publicly listed compliant exchange in the United States, and HashKey will now become the only publicly listed compliant exchange in China.

So HashKey represents the regular army of blockchain in China.

More importantly, HashKey is not just a compliant exchange in Hong Kong; its exchange business is expanding globally, with global, Japan, Middle East sites, and so on.

HashKey also spans various blockchain services, including asset custody, OTC services, institutional services (CaaS), HashKey Chain public chain, RWA issuance and management, and more.

So HashKey is a giant blockchain service enterprise, becoming the infrastructure of the Hong Kong region.

In the prospectus, HashKey also clearly stated its business structure: transaction facilitation services, on-chain services, and asset management services.

The highest proportion is from trading facilitation services, but the fastest growth is in on-chain services.

3️⃣ Why does HashKey want to go public? This is the strongest compliance endorsement!

What do traditional funds, also known as old money, care about the most?

It must be able to generate returns on the basis of ensuring the security of assets.

Many old-money individuals have long heard of Bitcoin's “high returns” and also want to allocate such a “digital gold.”

But old money doesn't understand technology and is more worried about the high risks of crypto assets.

It is surprising to see that a cryptocurrency exchange has directly listed on the Hong Kong stock market. With such a compliant and strongly secured channel, it is certain that there will be attempts to establish a presence.

Now that we have the channel, what is the next step?

is sales.

When we mention Hong Kong, we often see many people selling Hong Kong insurance.

On one hand, it indicates that there is a large amount of capital in need of an asset with stable returns; on the other hand, Hong Kong has a very mature financial product sales team.

Now, Hong Kong has another new type of high-yield asset, cryptocurrency.

4️⃣ What is the true value of HashKey? It is actually the value of the channel!

Hong Kong is a conduit, connecting the East and West as a hub or buffer for trading, commerce, and finance.

The value of Hong Kong lies in its “channel value”; in today's world where trade barriers are increasingly high and trade conflicts are intensifying, such channels have become extremely precious.

If Hong Kong is the gateway between China and the West, HashKey is the gateway between traditional financial markets and the Web3 world!

HashKey is primarily a funding channel.

Currently, HashKey has basically monopolized the market for institutional clients in Hong Kong, and the value of HashKey lies in the “compliance deposit and withdrawal channel.”

Secondly, HashKey is a technical channel.

Most traditional companies do not have a reserve of blockchain talent, but everyone wants to get in.

Previously, the digital asset pilot by Guotai Junan used HashKey for the underlying custody and technical architecture.

HashKey has provided institutions with a one-stop service called CaaS (Crypto-as-a-Service).

Overall, the channel value of HashKey is very important for institutional clients, especially during unfavorable market conditions, as toB services can still provide stable income.

5️⃣ What to do about the $HSK token issue that has been criticized by many?

HashKey has previously issued its own platform coin $HSK , and currently the coin price is not performing well. Many people are concerned that HashKey will neglect the platform coin after it goes public.

In fact, it has been disclosed in the HashKey prospectus that $HSK has been officially recorded in HashKey's balance sheet and income statement.

In other words, $HSK belongs to the company's assets, and the performance of the coin price will directly affect the company's “net profit.”

Therefore, the company will definitely be responsible for the long-term value of $HSK .

Whether for listing or for subsequent long-term compliance operations, the issue of the $HSK token will definitely be resolved, and there may even be motivation to develop the company's business as a value support for the token.

6️⃣ Wait for the wind to rise.

In HashKey's prospectus, there is a passage that states:

Due to the maturity of blockchain technology, increased regulatory clarity, and heightened user participation, digital assets are widely seen as approaching a crucial moment akin to the “1995 Internet” - a decisive turning point for mainstream adoption. In 1995, the Internet was recognized as entering the commercialization stage. Similarly, the number of monthly active digital asset addresses is expected to reach a historical high of 220 million by September 2024, tripling from the levels at the end of 2023. This growth pattern is reminiscent of the rapid rise of early Internet adoption.

HashKey also has many issues to address, such as high compliance costs, lack of profitability, high customer concentration, etc., but these are not problems in the face of rapid industry development and fast business growth.

Problems in development should be solved during development, not by stopping to solve them.

We are in the best of times.